Support of SDNRP to the Development of Cadaster, Inspectorate and Audit Functions (GAF)

Presentation on Khair Khana Training Center Develpment

Summary of Project Activities
Nov 2008 – Dec 2010


 

The Ministry of Mines

of the Islamic Republic of Afghanistan

 

Reference: MoM/PMU/4

IDA Grant No.: H238-AF

Project ID No.: P098118

 

SDNRP

Establishment of Cadastre,

Inspectorate, Audit and Licensing Functions

In the Ministry of Mines

2nd July 2012

Current Position on the Mining Regulations

Background:

The drafting of Mining Regulations began in 2008 and this task was contracted to an American Law firm. The initial draft covered the cadastre operation and omitted the technical component of the regulations. These draft technical regulations were compiled by the GAF team of mining engineers and incorporated into the regulations.

This incomplete draft document was submitted to Min of Justice in December 2009 and in the rush to get it enacted to meet the HIPC triggers, sections were cut out. The enacted portion was gazetted in Feb 2012. It is of little use in that it addresses a small section of what is required.

Draft Mineral Law 2012:

The drafting of a new Mineral Law was necessary to address impediments to mining investment that were entrenched in the Mineral Law 2009.  The draft Mineral Law 2012 has been submitted to Min of Justice for checking before being sent to the Cabinet for enactment. It is hoped that this will be finalised in July 2012.

New Mining Regulations:

Due to the changes in the draft Mineral Law 2012, it will be necessary to re-write the Mining Regulations and this should be a priority task in MoM.

Much of the work has been done. The technical regulations and mine standards that were drafted in 2009 can be used. The cadastral regulations need to be rewritten to reflect the changes in licensing categories and procedures as proposed in the draft Mineral Law 2012.

To expedite the writing of the regulations and to ensure that they become enacted into Law as soon as possible (after the enactment of the Mineral Law 2012), they should be sectionalized. Sections on;

  • Cadastre
  • Environment
  • Health and Safety
  • Use of Explosives
  • Technical Regulations and Mine Standards
  • Finance

etc can be developed independently and each section passed through the legal process without being delayed by waiting for all the regulations to be developed. There are still many unresolved issues and policy decisions that will have to be addressed by MoM, such as royalties and fees and the issues related to formalization of the informal mining sector.

MoM should identify and engage suitably qualified and experienced experts to assist local counterparts in the drafting of the Mining Regulations.

There are a number of examples of good modern mining regulations and these can modified and used as the base for workable regulations in Afghanistan.

Urgency:

Until Afghanistan has acceptable and legally enforceable Mining Regulations, the work of the Cadastre, Mine Inspectorate and the enforcement of fiscal requirements on the mining industry will not be practical. 

Tendering of new deposits and the proper control of the major mining projects, such as Aynak, will also be made extremely difficult.